Section 401(k) Plans Allow Employees to Contribute a Portion of Their

question 89

True/False

Section 401(k) plans allow employees to contribute a portion of their current wages or salary to a tax-exempt retirement account. However, the contributed portion is still taxable compensation to the employee.

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Definitions:

Manufacturer

A company or individual that makes goods for sale, typically involving large-scale production using machinery.

Marketing Channel

Pathways or routes through which goods and services travel from the producer or manufacturer to the end consumer, possibly including intermediaries.

Product

An item or service created through a process and available for exchange or sale to satisfy a need or want.

Service

An intangible commodity that involves providing labor, support, or a facility for a fee, where the benefit is realized without the need to own a physical product.